MARKET WATCH BY DINA EL BEHIRY
POWERED BY POWERED BY MARKET WATCH
REAL ESTATE INDUSTRY ACCOMPLISHMENTS
NATIONAL STRATEGY FOR URBAN DEVELOPMENT 2052 REVENUE EXPECTATIONS IN 2020
TARGET New Urban Communities doubling urbanization rate Authority's (NUCA) target % % EGP bn
HOUSING PROJECTS INFRASTRUCTURE
Social Housing & Mortgage Finance Fund Offers New Units Government to Develop Roads
Area Payment Period Up to 150 meters per unit Up to 20 years No. of Roads 197
Payment Method Minimum Installment Installments EGP 3,100 Roads’ Length 840 kilometers (km)
Location Beit El Watan Project (7th Phase) Giza, Qaluobiya, Mounifya, Dakhlya, Beheira, Kafr El Sheikh, Sharqiyah, Gharbia, Damietta, Beni Suef, Fayoum & Minya
New Housing Units
Government to Construct New Roads Number of Cities Location 5 Sheikh Zayed, New Cairo, 6th of October, New Damietta & New Mansoura No. of Roads 2,652
New Residential Plots Roads’ Length 6,587 km Number of Cities Location 8 Sheikh Zayed, 6th of October, El Obour, New Damietta, Badr, New Cairo, El Shorouk Investments & Sadat EGP 12.7 bn
Delivery Time Government to Implement New Projects in Fiscal Year (FY) 2019/20 2021-2022
Number of Projects Location Sohag, Beni Suef, Minya, 202 Assiut & Aswan Egyptian government to develop ring road Target Investments Developing villages EGP 944 mn with investments exceed EGP 7 bn
Sources: Cabinet, Ministry of Housing, Ministry of Planning, Monitoring and Administrative Reform (MPMAR) & Social Housing and Mortgage Finance Fund.
2 april 2020 - ISSUE 37 INVEST-GATE
LAND OFFERING
NUCA Offers Ministry of Housing Offers New Plots
No. of New Plots Location Badr, Sadat, New Minya, 10th of Ramadan, 15th of May, 30 New Borg El Arab, New Beni Suef, New Assiut & New Aswan
25 5 Target New housing projects
New Assiut East Port Said No. of New Plots (Sallam) 15 Acres 5 12 Acres
New Borg El Arab New Teba PRICES OF CONSTRUCTION MATERIALS 10 Acres 30 Acres (FEBRUARY 2020) (EGP) New 6th of October 9.6 Acres STEEL CRETAL PORTLAND COARSE BARS STEEL CEMENT SAND (per ton) (per ton) (per ton) (per sqm) Target , , establish technological universities (YOY -14.2%) (YOY -18.4%) (YOY -4.8%) (YOY 7. 7 %)
SOLID CEMENT BRICKS BRICK HOLLOW CONCRETE
(per 1,000 bricks) (40x20x12 cm) (per 1,000 bricks) , , (YOY 3.8%) (YOY 4%)
No. of New Plots 25 REAL ESTATE & CONSTRUCTION STOCK MARKETS INDEXES PERFORMANCE IN EGYPT (2020) Location 10 new cities (unveiled names) Real Estate Construction & Materials
Target establish urban, medical, industrial, commercial & administrative projects
POINTS
30 JAN 06 FEB 13 FEB 20 FEB 27 FEB NUCA Approves Allocating a Plot for National Hispanic Medical Coalition (NHMC)
ONLINE MONTHLY SURVEY (%) Area 72.2 Acres HOW DO YOU RANK THE GOVERNMENT'S ACHIEVEMENTS IN THE INFRASTRUCTURE SECTOR?
Location 31% El Shorouk 21% 17% 17% 14% Target Medical Services 1 2 3 4 5
Sources: Cabinet, Ministry of Housing, Egyptian Exchange (EGX) & Invest-Gate
THE VOICE OF REAL ESTATE 3 MARKET WATCH
NEW CITIES' UPDATES
NEW ADMINISTRATIVE CAPITAL (NAC)
NUCA Offers New Plots
Location No. of Plots Area R3 District 6 1,200-11,000 square meters (m2)
Area Projects
Commercial Administrative st 1,690.4 m2 Hotel nd 4,058.8 m2 rd 2,270 m2 1 2 Project 3 Project
Commercial th 2 th 2 th 3,830 m2 4 10,662.9 m School 5 1,289 m Nursery 6 Project
Capital Residence
Location Area
R3 District 1,000 Acres
No. of Neighbourhoods Residential Units 8 (in progress) The Administrative Capital for Urban 24,130 Development Company plans to
Accomplished by pump USD150 mn for Technological 86% advancements during 2020
BADR CITY EL ANDALUS (NEIGHBOURHOOD)
Location Area Location Investments East Badr City 33,000 Acres 10th of Ramadan USD 4.4 bn
No. of Housing Units Investments No. of Housing Units 33,000 EGP 8.5 bn 11,380
Delivery Date No. of Completed Units Remaining Units May 2021 2800 60% are completed
Source: Ministry of Housing, Utilities, and Urban Communities
4 april 2020 - ISSUE 37 INVEST-GATE
DEVELOPERS FINANCIAL STATUS 2019 VS. 2018
2018 2019 TOP COMPANIES LISTED IN EGX BASED ON HIGHEST PROFITS
T alaat Moustafa Group Holding
10.9 11.7 1,704 1,872
Revenues (EGP bn) 7.3% Net profit (EGP mn) 9.9% Emaar Misr for Development
6.3 5.4 3,400 1,700
Revenues (EGP bn) 14.3% Net profit (EGP mn) 50% Medinet Nasr Housing
2.8 2.2 1,100 1,000
Revenues (EGP bn) 21.4% Net profit (EGP mn) 9.1% Palm Hills Development Company
7.4 6.2 906.8 906.2
Revenues (EGP bn) 16.2% Net profit (EGP mn) 0.07% Six of October Development & Investment (SODIC)
3.7 5.3 450.9 721.2
Revenues (EGP bn) 43.2% Net profit (EGP mn) 59.9% Zahraa Maadi Investment & Development
0.5765 0.429 152.6 177.1
Revenues (EGP bn) 25.6% Net profit (EGP mn) 16.1% El Shams Housing & Urbanization
0.3052 0.2187 207.4 135.6
Revenues (EGP bn) 28.3% Net profit (EGP mn) 34.6% Development & Engineering Consultants
0.06408 0.06099 22.8 29.3
Revenues (EGP bn) 4.8% Net profit (EGP mn) 28.5% Egyptians Housing Development & Reconstruction
0.7424 0.2046 330.7 47.8
Revenues (EGP bn) 72.4% Net profit (EGP mn) 85.5% Emerald Real Estate Investment
0.056 0.0593 17.6 26.2
Revenues (EGP bn) 5.9% Net profit (EGP mn) 48.9%
Overall 3.284418 3.177259 829.28 661.54 Index 3.3% 20.2%
Source: Egyptian Exchange (EGX)
THE VOICE OF REAL ESTATE 5 MARKET WATCH
DEVELOPERS PROJECTS
RESIDENTIAL PROJECT
Developer Location Area Investment ARDIC for Real Esate Mostakbal City 70 Acres EGP 38 bn Development & Investment
Zizinia No. of Restaurants No. of Units Shopping Mall Medical Center El Mostakbal Supply Volume 1,756 No. of Restaurants Artificial Lakes Social Club Mosque
Developer Location Area Target Contracting Sales Mardev Developments New Administrative 17.5 Acres EGP 1.4 bn Capital (NAC) Menorca
Developer Location ARDIC for Real Esate Development & Investment Mostakbal City
No. of Restaurants The 205-Acre Supply Volume 3 Hotels Business & Commercial Areas No. of Restaurants Project One Tower with 45 floors School
Developer Location Area Investment Cairo West ALDAU Development West Cairo 10 Acres EGP 300 mn Residence (2nd Phase)
Developer Location Misr Italia Properties Mostakbal City
No. of Units Supply Volume Villas Twinhouses Sila 840 No. of Restaurants (Bosco City’s New Phase) Area No. of Restaurants 76-185 m2 for Apartments & 239-459 m2 Townhouses Apartments Mosque for Twinhouses &Villas
Developer Location Area Inertia 6th of October City 27 Acres New Project (Unveiled Name) Investment Delivery Date EGP 4 bn Q4 2020
Source: Developers’ official statements
6 april 2020 - ISSUE 37 INVEST-GATE
COMMERCIAL PROJECTS
Developer Location Area Investment Arkan Palm in partnership 26th of July Axis in 205 Acres EGP 59 bn with NUCA Sheikh Zayed City New Complex (Unveiled Name) Supply Volume Integrated commercial, administrative, medical, and recreational complex.
Developer Time Period No. of New Branches* Lulu Hypermarket 2020 Group Wadi Degla Park Mall- in front of AUC *Out of four new branches New Branches Plans to inaugurate 14 new branches in UAE, New expansion projects in NAC and Saudi Arabia, and Egypt during 2020 Al Alamein by 2022
Developer Location Area The Land Developers R7 District- NAC 18,000 m2
Investment Delivery Date (1st Phase) Armonia Walk EGP 500 mn September 2022
No. of Units No.Buildings' of Restaurants Height Supply Volume 1,750 7 floors No. of Restaurants Commercial Units Clinics Administrative Units
HOSPITALITY PROJECTS
Developer Location Area Investment Talaat Mostafa Holding’s Sultana Malak land 21,400 m2 EGP 1.5 bn unit, ICON & EGOTH in Luxor 5-Star Hotel Project (Unveiled Name) No. of Rooms & Suits No.Resturants of Restaurants Supply Volume 200 No. of Restaurants Meeting Rooms Gym Spa
Developer Location Rixos Hurghada
No. of Rooms & Suits No. ofof Job Restaurants Vacancies New Village Supply Volume 3,000 10,000 (Under Construction) No. of Football Yards No. of Restaurants 14 A conference hall for 1,000 attendees
Source: Developers’ official statements
THE VOICE OF REAL ESTATE 7 MARKET WATCH
ECONOMIC SNAPSHOT
WORLD’S MOST ECONOMICALLY POWERFUL CITIES
ANNUAL HEADLINE INFLATION
JANUARY FEBRUARY . % 1 London 2 New York .%
3 Tokyo 4 Paris
5 Singapore NET FOREIGN RESERVES (USD BN)
FEBRUARY JANUARY . Cairo . 24 (Out of 100 cities)
$ £ € Exchange Rates
British Pound USD Euro NET FOREIGN DIRECT INVESTMENTS (USD BN) . . . . .
. . . . . Q1 2019/20 . . . 2.4 . . - Jan - Feb - Feb - Feb - Feb 1.4 Q1 2018/19
CAPITAL MARKET INDICATORS
SUEZ CANAL REVENUES (USD MN) EGX 30 EGX 70 EWI EGX 100
14,106 13,919 13,859 13,721 458.2 13,009 433.9
1,384 1,395 1,401 1,365 1,311 1,277 1,274 1,267 1,256 1,209 FY FEBRUARY FEBRUARY JAN FEB FEB FEB FEB
Sources: Egyptian Exchange (EGX), Central Bank of Egypt (CBE), Central Agency for Public Mobilization and Statistics (CAPMAS) & Brand Finance
8 april 2020 - ISSUE 37 INVEST-GATE
GROSS DOMESTIC PRODUCT (GDP) GROWTH RATE BUDGET DEFICIT TO GDP
Q2 2018/19 Q2 2019/20 .% .% .% 5.4% 5.6% FY / FY / FY /
Ministry of Finance expects that the GDP Target FY 2019/20 Growth Rate will hit 6% in FY 2019/20 and 7% by 2022 7.2%
GDP (EGP TRN) UNEMPLOYMENT RATE
5.2 Q4 2019 Q4 2018 1 FY 2018/19 4.3 2 FY 2017/18 3.4 8% 8.9% 3 FY 2016/17
DEBT TO GDP LABOR FORCE (mn)
94.5% 82.2% 71.9% 28.9 28.4
FY / / /
Q1 2019/20 1.9% Q 66.7%
Source: Cabinet
THE VOICE OF REAL ESTATE 9 FULL ANALYSIS FACTS & FIGURES INVEST-GATE
REAL ESTATE INDUSTRY ACCOMPLISHMENTS BY DINA EL BEHIRY
With an eye on the efforts exerted by the government, particularly by the Ministry of Egypt has launched a new project on the 6th of October City, which will be delivered in Housing, Utilities, and Urban Communities, many real estate projects have been launched. Q4 2020. Another project is Zizinia El Mostakbal located in Mostakbal City. ARDIC for Real Accordingly, the New Urban Communities Authority (NUCA) has planned to achieve Estate Development & Investment has agreed with two more construction companies revenues reaching EGP 130 bn in 2020 from these projects given the recent COVID-19 to accelerate the execution of this project. Additionally, Misr Italia Properties launched developments in Egypt; things might be a bit altered. Bosco City’s new Phase, Sila, in Mostakbl City. Sila is a residential project that includes villas, twin houses, townhouse, and apartments. Additionally, executing these projects comes in line with the National Strategy for Urban Development 2052, which aims at doubling the urbanization rate from 7% to 14%. Moreover, Menorca project is developed by Mardev Developments in NAC. Menorca This came during Assem El Gazar, the Minister of Housing, speech at a forum on the covers an area of around 17.5 acres consisting of 738 housing units. management of major projects with limited time programs. For the commercial projects, Arkan Palm in partnership with NUCA plans to construct an Among these projects, the Social Housing and Mortgage Finance Fund plans to offer integrated commercial, administrative, medical, and recreational complex. The complex new additional units with areas of up to 150 meters. The payment of these units is will be located on the 26th of July Axis in Sheikh Zayed and is situated on 205 acres with based on installments with a minimum of around EGP 3,100. Moreover, Planning and investments of around EGP 59 bn. Additionally, The Land Developers announced the Economic Development Minister, Hala El-Saeed, pointed out that the government launch of Armonia Walk in March 2020. Armonia Walk is a commercial project located allocated investments amounting to EGP 944 mn to implement 202 projects in Fiscal in NAC, covering an area of 18,000 square meters with investments of around EGP 500 Year (FY) 2019/20. These projects aim to develop villages in the governorates of Sohag, mn. The Land Developers is projected to deliver the first phase in September 2022. Beni Suef, Minya, Assiut, and Aswan during the inauguration of a workshop on Egypt’s updated 2030 vision in Fayoum. Furthermore, Lulu Hypermarket Group plans to inaugurate four new branches in Egypt in 2020, also, the group plans to expand by launching new branches in NAC and Alamein Besides, the government pays a great deal of attention to the development of the New by 2022. Administrative Capital (NAC) as well as its expansion. Thus, NUCA has offered six new plots in the R3 district for the construction of new hotels, business projects, commercial In the hospitality segment, Talaat Mostafa Group (TMG) Holding and Arab Company for projects, and schools. Furthermore, the Administrative Capital for Urban Development Hotel & Tourism Investment (ICON) have inked an agreement with the Egyptian General Company plans to pump USD 150 mn for further technological advancements in NAC. Company for Tourism and Hotels (EGOTH) to establish a five-star hotel on Sultana Malak land in Luxor. Under the deal, ICON will develop the hotel with total investments Badr City, NUCA has launched Capital Park on an area of around 33,000 acres. Capital of EGP 1.5 bn. Park is projected to include 33,000 housing units with investments of EGP 8.5 bn and is to be delivered in 15 months (May 2021). Economic Snapshot On the other hand, the Ministry of Housing- through NUCA- has been offering many new plots to attract more investments either in residential, commercial, or hospitality Egypt experienced remarkable economic indicators. The real Gross Domestic Product projects. These plots were offered in several cities including NAC, New Cairo, New (GDP) growth rate recorded 5.6% in Q2 2019/20 up from 5.4% in Q2 2018/19; Ministry Assiut, New 6th of October, Badr, Sadat, New Minya, 10th of Ramadan, New Beni Suef, of Finance expects hitting 6% in FY 2019/20 and 7% in 2022. New Aswan, and many more. Speaking of the Annual Headline Inflation (CPI), after a consecutive increase for three When it comes to infrastructure, the government has been developing around 197 roads months, it dropped to 5.3% in February, down from 7.2% in January. Having such a with a total length of around 840 kilometers (km). These roads are located in cities of Giza, decline in the inflation rate means that the average prices of products will remain stable. Qaluobiya, Mounifya, Dakhlya, Beheira, Kafr El-Sheikh, Sharqiyah, Gharbia, Damietta, Beni Suef, Fayoum, and Minya. Furthermore, the government plans to construct new Additionally, the net foreign reserves continued going upwards reaching USD 45.5 2,652 roads with a total length of around 6,587 km in 2021-2022. These new roads will bn in February, compared to USD 45.45 bn in January. Similarly, the FDI increased to be located in several areas with investments of approximately EGP 12.7 bn; in addition, USD 2.4 bn in Q1 2019/20, up from USD 1.4 bn in Q1 2018/19, an increase of around the government is to allocate more than EGP 7 bn to develop the ring road in those areas. USD 1 bn. As for Suez Canal revenues, it rose to around USD 458.2 mn in February 2019, compared to USD 433.9 mn in the same month a year before. Another positive indicator witnessed is the decline of the unemployment rate, reaching 8% in Q4 2019, Private Sector down from 8.9% in Q4 2018.
In conjunction with the recent expansion projects, the private sector has managed to As a sign of success, Cairo is ranked the 24th out of the 100 most economically powerful launch several projects varying between residential, commercial, and hospitality. It is cities around the world, according to EcoWorld. London was selected in the first place, noticed that many developers directed their investments to housing projects. Inertia followed by New York, Tokyo, Paris, and then Singapore.
THE VOICE OF REAL ESTATE 11 www.invest-gate.me/reports
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